The 2008 Major League Baseball payrolls were released today and the Yankees somehow managed to spend more than ever with a total payroll of $209M. That is a $14M increase over last year’s payroll, which incidentally bought them a first round exit out of the playoffs by the Indians, who cost about a third as much. It’s hardly surprising that the Yankees are #1 when you consider that A-Rod will make more than the entire Florida Marlins roster this year.

The real surprise is that the Red Sox are no longer #2. Boston actually pared payroll by $10M this season and have been supplanted by the Detroit Tigers, who acquired Dontrelle Willis and Miguel Cabrera in the offseason, apparently with designs to win it all this year. The Tigers spent a league high $43.5M more this year vs 2007. Other teams who really opened up the checkbook this year are the Mets (+$20M) and the… Rays? Tampa Bay spent an extra $20M this year but still ranks next to last with a total payroll of $43.8M.

Besides the Red Sox, the Giants, A’s, and Orioles all stand out for significantly reducing payroll when MLB as a whole spent an additional $203M this year vs 2007. For the record, the Rockies only spent $54M on payroll last year.